Gold Price Prediction for January 25, 2017

Gold prices moved lower as the dollar gained traction on Tuesday following a stronger than expected Japanese PMI report.  The yellow metal found support near the 10-day moving average at 1,204.  Resistance is seen near the mid-November highs at 1,231. Momentum is decelerating as the RSI moves lower with price action reflecting potentially lower prices.

Japanese manufacturing activity accelerated at one of the fasted rates in the past 36-months on strong export orders.  Markit reported that the Japan Flash Manufacturing Purchasing Managers Index increased to 52.8 in January from a final 52.4 in the previous month. The flash report for new export orders rose to 53.2 from a final 51.1 in December. The initial index for new orders, rose to 54.1 from 53.2 in the previous month, the highest in 13 months.